Bank Charges Test Case Article discussion

Nathan_Spleen

The OFT have uodated their Q&As.

http://www.oft.gov.uk/advice_and_resources/resource_base/market-studies/personal/personal-test-case/personal2

cml2508

Well I honestly believe that the banks will not get away with charging people service fees for banking as it isn't a choice. Because of the issues with taxes etc it is now not possible to be paid cash so you are forced to have a bank account it would therefore be unfair for bank to impose charges on you when you have no choice in the matter, so I believe if the banks do this they will be challenged again!
Free banking wasn't around years ago you did have to pay charges and it was abolished because people were forced to have bank accounts so I really don't think they will get away with charging. It is unfair trading!

Mark7799

cml2508 wrote: »

Well I honestly believe that the banks will not get away with charging people service fees for banking as it isn't a choice. Because of the issues with taxes etc it is now not possible to be paid cash so you are forced to have a bank account it would therefore be unfair for bank to impose charges on you when you have no choice in the matter, so I believe if the banks do this they will be challenged again!
Free banking wasn't around years ago you did have to pay charges and it was abolished because people were forced to have bank accounts so I really don't think they will get away with charging. It is unfair trading!

The events you speak of are unconnected. What are 'the issue with taxes etc' to which you refer? People had been paid in cash for many years since the Truck Act and appropriate tax deductions were made.

"Free if in credit banking" (To give it its' correct name) was originally introduced by the Co-op in the 1970's. HSBC (then known as Midland Bank) then joined in c1984/5 and the other banks followed suit as they were losing customers to HSBC/Midland. The Truck Act (entitling workers to insist on being paid in cash wasn't repealed until about 1986.

PhiltheBear

alexjohnson wrote: »

And Santa Claus comes down the chimney at midnight on Christmas.

1. Plenty of people pay monthly fees for bank accounts already.
2. It seems to me that many reclaimers just paid their bank charges month in, month out, till people like Martin told them there was another way and did just about everythign for them bar licking the stamp on the envelope. While I'm sure it didn't delight them, did these people do much to stop it? No. What makes you think they'll reject monthly charges?
3. Banks are smarter than that - they won't go back to charges per cheque, though in the US often you are limited to a set number of "free" withdrawals per month, like eight. Free Link ATM access is definitely one to watch as well: they would love to charge you for using another bank's machine, and the other bank would also love to charge you for using their machine. Bit politically tricky when so many rural branches have been closed but it must be on the wishlist: Britain's free Link network is highly unusual. No, they'll do more of what they do already - they'll sell people "premium" accounts with travel insurance and a shiny "exclusive" gold card. But they will make it much harder to say no - want an arranged overdraft? "Premium" account. Mortgage? "Premium" account. And so on.
4. Will people be able to avoid monthly charges? Probably - by doing their homework. There will always be small banks trying to break into the market that offer a good deal. But many reclaimers never moved bank account, and just paid and paid and paid, seemingly accepting these charges as just another normal bill. Why would they move now?

It is most likely that they will go back to a per cheque charge - because they are trying to do away with cheques. Don't believe me? Try paying by cheque at almost any major retailer. They don't take them any more. So charging for them will make them used less - until such point as they vanish altogether and you'll have to buy a cheque in the same way you currently buy a bank draft.

But the most likely scenario is that one bank will try and charge. And watch their customers leave in droves. Now, they may take one of two attitudes. The first, and most likely, is "we don't give a !!!! because we hate personal current accounts anyway" and we are happy to lose those customers. The second is "oh dear we want those people back so we'll go back to offering free banking".

Banking is a competitive world - when it comes to getting new customers. But it's a fact that about 80% of people never change banks once they've opened an account. So, once you've got 'em they'll stay - no matter how much you charge them.

And don't believe the banks when they claim they'll have to charge if these punitive charges aren't allowed. It's not a huge part of a retail bank's income. But they will use it as an excuse - which is a completely different thing.

As for ATMs - they tried charging a few years ago and found that people were queueing up at the counter to withdraw cash, which cost them much more, so they dropped it (but, of course, lied and said it was out of the goodness of their hearts).

worrygirl

Hello

I have just read Martins info on the lastest that has happened and I see he says if you are in financial difficulties and classed as a hardship case you can go ahead and ask the bank or FOS to let you carry on your claim?

I am on a DMP and although I am coping at the moment I still have a lot of debt to clear over the next few years and the £4k or so I could reclaim would take a nice chunk out of what I owe! This could come off the bank debt I owe?

does anyone know if this is worth asking in my situation? Would anyone on a DMP be classed as a hardship case?

Thanks for you help x

chipbeck

alexjohnson wrote: »

And Santa Claus comes down the chimney at midnight on Christmas.

1. Plenty of people pay monthly fees for bank accounts already.
2. It seems to me that many reclaimers just paid their bank charges month in, month out, till people like Martin told them there was another way and did just about everythign for them bar licking the stamp on the envelope. While I'm sure it didn't delight them, did these people do much to stop it? No. What makes you think they'll reject monthly charges?
3. Banks are smarter than that - they won't go back to charges per cheque, though in the US often you are limited to a set number of "free" withdrawals per month, like eight. Free Link ATM access is definitely one to watch as well: they would love to charge you for using another bank's machine, and the other bank would also love to charge you for using their machine. Bit politically tricky when so many rural branches have been closed but it must be on the wishlist: Britain's free Link network is highly unusual. No, they'll do more of what they do already - they'll sell people "premium" accounts with travel insurance and a shiny "exclusive" gold card. But they will make it much harder to say no - want an arranged overdraft? "Premium" account. Mortgage? "Premium" account. And so on.
4. Will people be able to avoid monthly charges? Probably - by doing their homework. There will always be small banks trying to break into the market that offer a good deal. But many reclaimers never moved bank account, and just paid and paid and paid, seemingly accepting these charges as just another normal bill. Why would they move now?

Thought they'd already tried these.

lostcrusader

joskin69 wrote: »

Ok, so I moved from The Abbey to The Cooperative thinking it was a more ethical bank, and in many ways it is. However, their bank charges are actually higher per item than The Abbey's! (silly me!) I have written to The Cooperative Bank suggesting that alongside their campaigns to save the world, eradicate poverty, famine, clean up villages' water supplies and not support oppressive regimes that they might consider being nice to their customers and not charge hideous bank charges that cause so many people to fall headlong into a spiral of debt. I am still waiting for a reply! (6 months have now passed? Anyone up for challenging them on this? Does anyone know of a reasonable bank anywhere in this alleged free and democratic land we survive in?
Jo

Hi,

Just read your message as I joined the Cooperative Bank as it is the only one that provided a Elecron card with my income.

A Direct Debit came out early and put me overdrawn by £7.91 and I got the standard letter to tell me this. However to their credit they did not charge me any charges. Had to take a week of with shock..

Think the whole banking issue is criminal personally. Makes Robin Hood look a saint.

:beer:

lostcrusader

Hello fellow campaigners

I have a case in the small claims court which was stayed in October. I asked for the banks to allow the claim to be heard due to the fact that I was on state benefits at the time of the charges and as such should be protected by crown statute.

The bank refused the argument and as such I have asked the Financial Ombudsmen to look into it.


This is about the charges and not getting any assistance as far as replying to letters, phone calls, emails, faxes and as such have failed in their quality of service..... :rotfl:


Not expecting the OFT to beat the banking system as most judges have shares in the banks... DOH !!!!!!!!!!!!!!!!!!!!!!


If the courts were for the people it would have been sorted out sooner rather than later.

Good Luck and keep fighting on..


:beer:

wal4rus

On the statute of limitations hold announced by FSA, Martin mentions 2 different dates 27 April 2007 and 27 July 2007 that this applies from. Which one is correct? Thank you.

williamh1

Last year I made a claim and was offered and accepted about an 80% refund of the bank's charges. Should the OFT decide in customers' favour would I be able to reclaim the remaining 20%?